Amazing Money Magnet Review: 5 level Ponzi scheme
There is no information on the Amazing Money Magnet website indicating who owns or runs the business.
The company’s website domain (amazingmoneymagnet.com) was registered on the 29th August 2012, however the domain registration information is set to private.
As always, if a MLM company is not openly upfront about who is running or owns it, think long and hard about joining and/or handing over any money.
The Amazing Money Magnet Product Line
There is no retailable products or services within the Amazing Money Magnet business opportunity.
Instead, members join the company and make investments with the company. Bundled with each investment made are a series of advertising credits, which can be used to display advertising on an inhouse network featured on the Amazing Money Magnet website.
The Amazing Money Magnet Compensation Plan
Amazing Money Magnet allow members to make investments with the company via five investment plans:
- Phase 1 – invest $11, pays out a $2.55 ROI first 6 cycles and $1.27 the next 6
- Phase 2 – invest $22, pays out a $5.10 ROI first 6 cycles and $2.55 the next 6
- Phase 3 – invest $44, pays out a $10.20 ROI first 6 cycles and $22 the next 6
- Phase 4 – invest $88, pays out a $20.40 ROI first 6 cycles and $44 the next 6
- Phase 5 – invest $132, pays out a $30.60 ROI first 6 cycles and $15.30 the next 6
Note that each investment is able to “cycle” a maximum of 12 times, upon which the investment expires.
Referral commissions are also paid out on the investments made by personally recruited members (1 level only):
- Phase 1 – $1
- Phase 2 – $2
- Phase 3 – $3
- Phase 4 – $5
- Phase 5 – $8
Additionally, 50% of all ROIs paid out to members must be re-invested back into the scheme. Members are also capped at withdrawing $2500 every 7 days.
Joining Amazing Money Magnet
Membership to Amazing Money Magnet is free, however members cannot actually earn anything without investing into the scheme.
Upon making their first investment with the company, all members are charged $10.
Free members can earn virtual earnings by recruiting new members and convincing them to invest, however if they wish to actually withdraw anything they too must eventually make an investment into the scheme.
With no products or services being sold and all moneys paid out being sourced from new member investments, Amazing Money Magnet fits the textbook definition of a Ponzi scheme.
Despite this however, the company stringently denies it is an investment scheme:
AMM is a fully automated advertising site that will cater and fulfill your advertising needs. We are NOT an investment company or a HYIP nor a get rich overnight site.
The company claims its members are not making investments and being paid out a ROI, but rather are “purchasing advertising position packages”. Advertising positions… really?
Apart from having no idea what an “advertising position” even is, any notion of Amazing Money Magnet selling advertising of any kind is put to rest upon examination of the company’s refund policy:
All sales and payments at AMM are final. We do not offer any refunds!
Logic would dictate that if advertising credits were infact being sold, should a member not use them they’d then be entitled to a refund.
Of course with Amazing Money Magnet using newly invested money to pay out existing ROI liabilities on old investments, this is naturally not possible.
Amazing Money Magnet don’t actually specify how long a cycle is, but with no external revenue sources how quickly investments cycle obviously depends on how much new investment money is being pumped into the scheme by members.
Once the new investments stop, so too will the cycling and Amazing Money Magnet will come to a grinding halt. Unfortunately as with all Ponzi schemes, those who invested last lose it all.